The Australian Government is making home ownership more accessible with major updates to the Home Guarantee Scheme. From 1 October 2025, the Scheme will be expanded with unlimited places, higher property price caps, and simplified eligibility, helping more Australians purchase their first home sooner.
This expansion removes barriers such as limited places and income restrictions, while still allowing eligible first home buyers to enter the market with as little as a 5% deposit and no Lenders Mortgage Insurance (LMI).
What’s Changing from 1 October 2025?
- No place limits – Every eligible first home buyer with a 5% deposit can apply.
- No income caps – Buyers with higher incomes will now qualify.
- Higher property price caps – Adjusted to match today’s rising market.
- Simpler regional access – The Regional First Home Buyer Guarantee will merge into the main Scheme.
The Scheme will continue to be available nationwide through 30+ Participating Lenders, including major banks, regional banks, and customer-owned banks.
How to Apply After 1 October 2025
- Check your eligibility
- Confirm the new property price caps in your area (see table below)
- Select a Participating Lender
- Your lender will process your application and pre-approval
- Start your journey to finding your new home!
Impact on the Property Market After 1 October 2025
The expansion of the Home Guarantee Scheme is expected to significantly influence the property market in several ways:
● Increased buyer demand: With no cap on places, more first-home buyers are likely to enter the market, creating stronger competition for properties.
● Support for affordability: Removing income caps and increasing property price limits opens the door for buyers who previously didn’t qualify.
● Regional growth: Merging regional guarantees into the First Home Guarantee will make it easier for buyers in regional areas, boosting demand outside capital cities.
● Shift in market dynamics: Sellers may benefit from stronger demand, particularly in suburbs where property prices align with the new caps.
● Opportunities for investors and developers: Higher first-home buyer activity may influence entry-level housing supply and long-term market trends.
● Potential price uplift: Increased competition could push property values higher, especially in entry-level markets.
● Equity growth for early movers: Buyers who act quickly may secure properties before price growth accelerates, gaining a valuable equity advantage.
● Improved confidence in the market: Broader access and policy certainty could encourage hesitant buyers to take action, stimulating overall market activity.
● Impact on investor portfolios and the broader financial market: Rising first-home buyer activity may influence investor behavior, prompting adjustments in property investments or diversification into other assets, potentially affecting local stock market sentiment.
Together, these changes are set to reshape the property market from October 2025. For buyers, timing and strategy will be more important than ever.
Property Price Caps from 1 October 2025
Need Expert Guidance?
For more details and FAQs, visit Ash Buyers Agency. If you’d like personalised support with navigating the new Scheme and securing your first home, our team is here to help.
If you’d like expert support navigating the Scheme, Ash Buyers Agency is here to help. As your trusted Buyers Agent in Sydney, we’ll guide you through the process and make buying your first home simpler. Call us today on +61 434 111 200 to get started.
Important: These changes take effect from 1 October 2025. Until then, the Scheme is still available under current rules and caps.
Follow us on Facebook and Instagram for the latest updates on price caps, expert buyer insights, and inspiring first home buyer success stories!